The Real Deal Miami

Building experts divided on bailout plan

September 24, 2008 03:53PM

It’s unclear whether the $700 billion bailout plan will help home builders struggling in this financial climate. Paul Puryear, a Raymond James & Associates home-building analyst, said the government’s focus on improving housing will benefit builders. But, a pending federal ban on the practice of charities giving down payments to home buyers on loans backed by the Federal Housing Administration, will mean one less source of financing in a world of tighter mortgage restrictions. Some builders argue that a tax credit is needed in addition to the bailout.